2 All of this WITHOUT ANY national TV or radio advertising! Primerica…Who Are We:The Largest Independent Financial Services Marketing Organization in North America!Listed on the NEW YORK STOCK EXCHANGECanada Pension Plan invested over $42 Million!In business since 1977More than 6.3 Million ClientsAll of this WITHOUT ANY national TV or radio advertising!1-4
3 100 people surveyed at age 65… 54% dependent36% working5% deceased4% OK ($1 million)Source:SmartMoney 20111% Wealthy ($5 million)Why do 90% of the people fail when it comes to their finances?No financial educationNo financial game planNo financial coach2-4
4 Today’s financial challenges… How real and serious are these problems? Average CREDIT CARD DEBT among households with balances on their cards: $15,788.-AARP Bulletin July – August 2010600,000 Canadians will struggle to make their MORTGAGE PAYMENTS if their rates rise by just 1% Advisor.ca November 9, 201121% of Canadians have NO LIFE INSURANCE www.clhia.ca 2010 Edition61% of Canadians do not make RRSP CONTRIBUTIONS THAT THEY ARE ELIGIBLE FOR.-Advisor.ca March45% OF WORKERS feel “NOT CONFIDENT” that they will have ENOUGH MONEY TO LIVE COMFORTABLY THROUGH RETIREMENT www.clhia.ca 2010 Edition6 in 10 Canadian workers report they live PAYCHEQUE TO PAYCHEQUE to make ends meet Toronto Star SeptemberCANADIAN PAYCHEQUES ARE NOT KEEPING UP WITH INFLATION Stats Canada Sept2012How real and serious are these problems?3-4
5 To help families earn more income, become properly Our mission…To help families earn more income, become properlyprotected, debt free and financially independent.Problem:Institutions are selling products, they are not providing families with solutions!Solution: Financial Needs AnalysisPrimerica provides families with anEducation based, financial blueprint and a coach to help simplify their situation.COMPLIMENTARYCONFIDENTIALCUSTOMIZED4-4
6 Bob (35) & Susan (33) Smith, with two children FNA example…Bob (35) & Susan (33) Smith, with two childrenBEFORE PRIMERICAWITH PRIMERICADebt:Debt Solution:$150,000 mortgage balance. $24,250 on two credit cards and one installment loan with total monthly debt payments of $2,278.Debt free in 21.7 years.Consolidate debts at $178,000. Makes available $1,061/month.Accelerate mortgage payments with $661 freed up monthly dollars and $400 towards savings goals.Debt Free in 10.4 years & $65,000 Invested.A or B
7 Bob (35) & Susan (33) Smith, with two children FNA example…Bob (35) & Susan (33) Smith, with two childrenBEFORE PRIMERICAWITH PRIMERICACreditor Life Insurance:Term Life Insurance:$150,000 coverage on Bob$150,000 coverage on SusanNo protection on the childrenTotal monthly cost: $138$300,000 coverage on Bob$300,000 coverage on Susan$25,000 on each of the childrenTotal monthly cost: $ Saving $55/month.A or B
8 X Eliminate the middleman… Traditional Financial Institutions Your MoneyGlobal EconomyTraditional Institutions = Historically Low Rates of Return
9 The Rule of 72… sometimes called the banker’s rule Divide your interest rate into 72 to find the approximatenumber of years it takes for your money to double!Numberof Years4%6%12%Shouldn’t we have learned this rule in school?How do you win a game if you don’t know the rules?Do banks or insurance companies have any incentive to teach us this rule?Who would benefit from learning this rule?$20,000$20,000$20,0006$40,00012$40,000$80,00018$40,000$160,00024$80,000$320,00030$640,00036$80,000$160,000$1,280,000Without introducing us to family and friends, how would they learnthe “Rule of 72?”
10 Financial Independence number… If you want to be financially free, you need to estimate of how much you will need to accumulate – your personal Financial Independence Number (FIN)! Knowing this number is a critical first step.You want to retire in 30 years, with $30,000 a year…30 years from now, after 3%inflation… $73,000 spends like$30,000 does today.Your FIN is $1,079,000To get there, invest $473 per month for 30 years at 10% = $1,079,000How important is it to know your Financial Independence Number?This hypothetical example assumes 20 years of retirement income needed, at a 6% post-retirement rate of return and 3% inflation. Hypothetical investment rates assume a nominal 10% rate of return, compounded monthly, and is not indicative of any specific investment. Any actual investment may be subject to taxes and f ees, which would lower performance. This example shows a constant rate of return, unlike actual investments, which may fluctuate in value.
11 Bob (35) & Susan (33) Smith, with two children FNA example…Bob (35) & Susan (33) Smith, with two childrenBEFORE PRIMERICAWITH PRIMERICARetirement:Financial Independence:Bob and Susan had $20,800 in retirement savings at the bank earning 3% with contributions of $125/month.When Bob turns 65, the Smiths will have $123,944.We helped Bob & Susan invest $580/MONTH using $400 freed up from debt and $55 freed up from insurance costs plus $125 already contributing.When Bob turns 65, the Smiths will have $1,735,000.ON A SCALE OF 1-10, 10 BEING THE HIGHEST. HOW WOULD YOU RATE YOUR DESIRE TO BECOME PROPERLY PROTECTED, DEBT FREE AND FINANCIALLY INDEPENDENT?
14 YOU 50% contract District Leader… Total = $2,500 x12 months 25%$1,000 x 50% = $500 x 2 = $1,000YOU$1,000 x 25% = $250 x 6 = $1,500Total = $2,500x12 months$30,000/yearCould you use an extra $2,500/month
15 70% contract Regional Leader… YOU Total = $4,600 x12 months 20070% contractx 70% = $1,400$1,000 x 2 = $2,000YOUx 20% = $3,200$1,000 x 16 = $16,000DIST 50%DIST 50%DIST 50%Total = $4,600x12 months$55,200/yearReplace your income, part time
16 Regional Vice President… DIV 60%110% contractYOUDIV 60%$1,000 x 2 = $2,000x 110% = $2,200DistrictDIV 60%$1,000 x 20 = $20,000x 50% = $10,000DIV 60%Total = $12,200x12 months$146,400/yearDistrictDistrictCould you start achieving yourdreams with this kind of income?
17 100 RVP’s Average $110k per year Atlantic Canada Leadership Council100 RVP’s Average $110k per yearNo territoriesOverridesBonusesResidual Income40+ Checks/ MonthPrimerica StockOwnershipBuilding a LegacyTripsCalifornia, Puerto RicoHawaii, FloridaRecognition